Gilt issuance may strain Brown's spending plans

Increased UK gilt issuance could force up yields on longer-dated paper, adding further strain to the...

Increased UK gilt issuance could force up yields on longer-dated paper, adding further strain to the Chancellor's already controversial public spending plans. Falling corporate earnings and limp individual earnings growth have hindered the Chancellor's fiscal planning over the past two years but his growth targets for the economy remain surprisingly upbeat. While Gordon Brown predicts economic growth of more than 3% in both 2003 and 2004 will counter the need for increased public borrowing in the coming years, many observers are sceptical at best. Haydn Davies, chief economist at Bar...